Last week was negative with the market closing down slightly.
Indicating that perhaps a high was in, however, I do not expect that this is the case. We could see one more rally before the market gives up its recent gains.
Retail sales are still struggling with this sector of the market generally trading at losses. Combine this with many coalmines currently also trading at losses and the short-term picture is bleak at best.
It is however a good time for those traders out there to lock in some profits: BHP and Monadelphous Group being a good place to start.
For the value buyer Metcash is looking cheap at these prices and there is value for the more conservative investor in the NABHA’s.
The small miners are still under performing and look like value at present while BHP and RIO are outperforming as investors chase the Blue chips.
Interest rates cut again to what is being described as emergency levels yet unemployment is expected to increase.
Will this cut stimulate the economy?
Depends on which part of the country you live in. Sydney is seeing higher clearance rates at auctions yet in Mackay large incentives are being offer by investor in property to find tenants.